Page 33 - Premier Brains Global -Doing Business in UAE (Low Res)

DOING BUSINESS in UAE

UAE LABOUR LAW Visa requirements

Employment parameters including work Employer company must provide the basic
hours, leave, termination rights, and essentials such as : A one-to-two-year
medical benefits are governed by the employment visa, a residency permit, and
UAE Labour Law. Conflicting clauses in an an Emirates ID to work in the UAE.
employment contract that are regarded
to be less beneficial to the employee have Subsequently, Employees can sponsor their
been replaced by the Labour Law. families to live in the UAE. For international
Some Free Zones such as Dubai International employees or visitors, a three-month
Financial Center (DIFC) or Abu Dhabi Global mission visa can be obtained if necessary.
Market (ADGM), have their own labour
regulations. A long-term resident visa that is
automatically renewed after 5 or 10 years
was introduced by the UAE also referred to
Emiratization
as Golden Visa. The eligibility requirements
Requirements for both five- and ten-year visas are broad
and include a variety of eligible situations,
The UAE government initiated an including real estate investors, business
Emiratization initiative requires the owners, researchers of exceptional ability,
employment of Emiratis, especially in students with promising scientific talents,
the private sector, to address structural and their respective families.
inequalities in the labour market.
Emiratization aims to increase the number Health insurance requirements are imposed
of Emiratis who are employed and their by the government for the sponsorship of
economic contribution. Using incentives, employees’ work permits. An employer is
and the creation of a specific department, required to submit valid health insurance
the UAE promotes Emiratization at all levels. at the final stage of a new or renewal work
and residence permit application for its
UAE has set a “minimum” Emiratisation rate employee.
of 2 per cent annually from high-skilled jobs
in establishments having more than 50
employees. The aim is to raise this rate to
10 per cent by 2026. Starting in 2024, private
sector companies with a workforce of 20 to
49 workers will be required to hire at least
one Emirati and from 2025, they would be
required to hire at least two Emirati citizens.

Many incentives are also offered alongwith
such as discounts on service fees in hiring
employees in UAE especially for companies
meeting or exceeding Emiratization targets.
There are penalties levied if minimum
Emiratization targets are not achieved.

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